HCMC – The economic slowdown in Vietnam has led to a significant decline in personal income tax revenue.
Personal income tax revenue in the first half of 2023 dropped by 7% against the same period last year at VND86.9 trillion, showed data from the General Statistics Office (GSO).
HCMC has not been spared by the economic downturn. The city’s tax revenue slid by 3% year-on-year in this period at VND30.9 trillion, the first decline in five years.
The tax revenue plunge is attributable to the ongoing economic difficulties, which have led unemployment to soar. The GSO reported that over 200,000 individuals lost their jobs in the first quarter, primarily in labor-intensive sectors such as textile, footwear, and accessory manufacturing.
Unfavorable business conditions have prompted enterprises to scramble for cost-cutting measures, including salary and bonus reductions, affecting the income of their employees.
Recent data indicated that over one million individuals of working age became unemployed in the second quarter of the year.
The Mekong Delta and southeastern regions have been most affected, with the highest unemployment rates. In HCMC, the percentage of working-age individuals who lost their jobs increased to 3.71% in the second quarter compared to the first quarter.
In contrast, Hanoi witnessed a decrease in job losses, with only 1.23% of working-age individuals losing their jobs.
Source: The SaigonTimes